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The government offers Rogers his old job back, but he declines. Walker, who'd been so gung-ho to replace him, realizes that it's not the costume, it's not the shield--it's Rogers's spirit that makes him the real Captain America. Walker steps down, and order is restored.
Can Steve Rogers prevail against such overwhelming odds? Of course he can.
And the true mastermind of all of this--Rogers being forced to resign, Walker chosen to replace him--stands revealed. Of course it was The Red Skull's doing.
And FINALLY after 18 months of buildup, we get Steve Rogers vs. John Walker. Walker's younger, stronger, and nigh-unstoppable. Rogers, meanwhile, has just undergone a serious crisis of faith.
Steve Rogers teams up with Battlestar to rescue John Walker, who's completely catatonic at this point.
Next he goes off half-cocked and got his butt kicked by Flag-Smasher, who held him captive and would only exchange him for the real Captain America. He even took Cap's shield from him.
Next up? Revenge on Walker's former partners, Hector and Jerome, who'd exposed his secret identity. Walker wasn't even attempting to live up to his predecessor's reputation here. Did I mention this was the Reagan era?
At story's end, Reagan was back to normal...or, close enough, anyway.
Steve Rogers, the former Captain America, was operating as "The Captain" at this time, and he came to D.C. and took care of business. He narrowly avoided crossing paths with John Walker here, but we got to see that Rogers was still at the top of his game.